Question

Waterford Company maintains a cafeteria for its employees. For June, variable food costs were budgeted at $64 per employee based on a budgeted level of 390 employees in other departments. During the month, an average of 380 employees worked in other departments and actual food costs totaled $11,150. How much food cost should be charged to the other departments at the end of the month for performance evaluation purposes?

A. $24,960.

B. $11,150.

C. $24,320.

D. $11,443.

Answer 1

variable food cost allocated to other department is $24320

So option (c) will be the correct answer

Step-by-step explanation:

We have given variable food cost were budgeted at $64 per employee

Average of employee = 380

We have to find the food cost allocated to the other department

Variable food cost allocated to the other department = 380×$24 = $24320

So variable food cost allocated to other department is $24320

So option (c) will be the correct answer